Vegetarians: How do you reconcile eating dairy?

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Vegetarians: How do you reconcile eating dairy?

Please note this is not a rhetorical, accusatory question. I ask because I was a vegetarian for many years and have been a pescatarian for the past five. Recently though I began re reading about factory farms (started "Eating Animals") and started questioning my logic of not eating red or white meat but taking in dairy on a daily basis.

Turns out, yeah they are. (Pardon me for my ignorance!) So I'm a crossroads: Do I go whole (ahem) hog and eradicate all dairy--for the sake of being mindful about no animal products--or should I stay pleased with just not eating red meat, pork, and poultry?

All of my friends eat meat of some sort and I want to avoid in-person, heated discussions about this. Hence my post about this topic.